Overview
- Bankrate’s March 4 national survey shows the average $30,000 HELOC down 14 basis points to 7.18%, marking a multi-year low.
- At current levels, HELOCs are cheaper than many alternatives, with average personal loans near 12%, credit cards about 19.6%, and home equity loans around 7.84%.
- HELOC pricing reflects monetary policy and inflation trends, and Bankrate’s Ted Rossman projects three quarter-point Fed cuts in 2026 that could push rates down further.
- Interest on HELOCs used for eligible home improvements may be tax-deductible for 2026 spending, potentially reducing net borrowing costs.
- Access still depends on credit and loan-to-value caps around 80%–85%, while newer offerings like High Tech Lending’s Equity Select advertise a higher 9.66% rate with very low required payments and potential negative amortization risk.